Asymmetric pricing in the Spanish electricity market

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  • Resum

    This article investigates the extent to which the wholesale electricity market in Spain has price asymmetries in the 2017-2020 period. This phenomenon, known as the Rockets and Feathers effect since its first application in gasoline markets by Bacon in 1991, is analyzed following two different empirical approaches, the non-linear regression used in that article and the lagged differences broadly applied in recent Rockets and Feathers literature like Remer 2015. Besides, this second methodology is divided into different variants depending on the number of lags, and the controls that are taken into account. The study includes data from the main cost fluctuation sources in the period for the technologies involved in overall production, and no other papers have discussed this hypothesis in the Spanish daily electricity case to the best of our knowledge. Our estimations conclude that no asymmetric pricing can be proved significantly through any of the two analyses.
  • Descripció

    Treball de Fi de Grau en Economia. Curs 2021-2022
    Tutora: Rosa Ferrer Zarzuela
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